Credit unions and loan companies have started using a starter interrupt device, a hardware that connects to their customer’s vehicle. This device detects when a loan is issued to a customer with bad credit. It deactivates the vehicle if a customer misses payments. The starter interrupt operates over a cellular signal, and can be activated by an employee of the loan company. It can be done simply on an office computer or even through an application on a smartphone.
It was made in an effort to protect lenders assets and minimize delinquencies, dealers and lenders are increasingly inserting starter interrupt devices and GPS trackers in cars. The GPS function allows the lender to track the exact location of the car.
According to Lionel M. Vead Jr an employee at First Castle Federal Credit Union, the company makes various attempts to reach customers by phone and in person. After 30 days with no response the vehicle will be deactivated at the borrower’s home or workplace. Some lenders deactivate the vehicle if a borrower is even one day late in making a payment.
There are approximately two million vehicles in the United States with a starter interrupt device installed. The extent of control lenders have has lead borrowers to be worrisome.